On July 24, 2025, India 🇮🇳 and the United Kingdom 🇬🇧 signed a Free Trade Agreement (FTA) that brings major changes for Indian professionals and businesses looking to work or provide services in the UK. This update explains what has changed, who is affected, what actions are needed, and what these changes mean for pending and future applications. The agreement is now in force, and its business mobility rules are legally binding.
Summary of What Changed
The India–UK Deal, through the new Free Trade Agreement, does not create new visa categories but locks in and expands access to existing UK visa routes under the Global Business Mobility (GBM) scheme. This means Indian nationals can continue to use current pathways for business visits, intra-company transfers, and service provision, with new guarantees on minimum stay durations and expanded access to more service sectors. The agreement also introduces a new annual quota for niche professions and offers cost-saving benefits for Indian professionals and their employers.
Who Is Affected
- Indian professionals seeking short- or medium-term work in the UK
- Indian companies with UK branches or clients
- UK employers hiring Indian nationals under business mobility routes
- Service suppliers and independent professionals from India
- Niche professionals such as chefs, yoga instructors, and musicians
- Indian and UK governments and regulatory bodies
Effective Dates
- The FTA was signed on July 24, 2025.
- All business mobility provisions are immediately in force as of July 25, 2025.
- Annual quotas and sector expansions apply from the date of signing.
Required Actions
For Indian professionals and businesses, the following steps are important:
- Review eligibility for the relevant GBM visa route (Business Visitor, Intra-Corporate Transferee, Contractual Service Supplier, Independent Professional, or Niche Professional).
- Ensure sponsorship: UK employers must hold a valid Sponsor Licence and issue a Certificate of Sponsorship (CoS) for most GBM routes. Learn more about sponsorship on the UK government’s official site.
- Prepare documents: Gather proof of qualifications, contracts, and other supporting documents as required for the chosen visa route.
- Apply online: Submit the visa application through the UK Home Office portal, attaching all necessary documents.
- Monitor updates: Watch for further details from the UK Home Office on sector eligibility and quota management, especially for niche professions.
Implications for Pending Applications
- No disruption: Pending applications under GBM routes will not be affected negatively. The FTA guarantees that Indian applicants will not face sudden changes or reductions in visa duration.
- Minimum stay protection: If you have applied or plan to apply for an Intra-Corporate Transferee visa, you are now guaranteed a minimum three-year stay, even if UK policy changes in the future.
- Expanded opportunities: If you are a service supplier or independent professional, you may now be eligible under more sectors than before, thanks to the FTA’s expanded list.
Detailed Breakdown of the India–UK Deal and Free Trade Agreement
1. Preservation of Existing Visa Routes
The FTA ensures Indian nationals keep access to all current GBM visa routes, including:
- Business Visitors: For short-term trips such as meetings, conferences, or negotiations.
- Intra-Corporate Transferees (ICT): For employees of Indian companies assigned to UK branches.
- Contractual Service Suppliers: For professionals providing services under contract in eligible sectors.
- Independent Professionals: For self-employed professionals working on contracts in the UK.
No new visa categories have been introduced, but the agreement gives Indian professionals and their employers much-needed predictability and stability.
2. Minimum Stay Duration Locked In
A key part of the agreement is the guarantee that Indian professionals using GBM routes will have at least a three-year visa duration. This means:
- Even if the UK reduces the maximum stay for these visa routes in the future, Indian nationals will still be allowed to stay for at least three years.
- Current rules allow up to five years (or nine years for high earners) for Intra-Corporate Transferees, but the FTA ensures no retroactive shortening for Indian applicants.
3. Expanded Access to Service Sectors
The FTA expands the number of service sectors open to Indian professionals from a smaller list to 35 sectors. These include:
- Engineering
- Architecture
- Information Technology (IT)
- Accounting
- Creative fields (such as music and wellness)
This broadening means more Indian professionals can qualify for GBM visas, especially in areas that were previously restricted.
4. New Annual Quota for Niche Professions
A new feature of the deal is the allocation of 1,800 visas per year for niche professions. These include:
- Chefs
- Yoga instructors
- Classical musicians
This quota is designed to support cultural and wellness exchanges and makes it easier for Indian experts in these fields to work in the UK.
5. Social Security Exemption
Indian professionals and their employers are now exempt from paying UK National Insurance contributions for up to three years. This exemption applies to up to 75,000 Indian professionals at any one time and can save both workers and companies a significant amount of money.
6. No Economic Needs Test for Expanded Sectors
For the 35 expanded service sectors, Indian professionals do not need to pass an Economic Needs Test. This removes a major barrier and speeds up the process for eligible applicants.
Step-by-Step Application Process for Indian Professionals
- Sponsorship
- UK employers must have a valid Sponsor Licence.
- They must issue a Certificate of Sponsorship (CoS) to the applicant.
- Learn more about sponsorship requirements on the official UK government website.
- Eligibility Check
- Applicants must meet skill, salary, and sector requirements for the chosen GBM route.
- For Intra-Corporate Transferees, a minimum salary threshold applies.
- For Contractual Service Suppliers and Independent Professionals, proof of contract and qualifications is needed.
- Application Submission
- Apply online through the UK Home Office portal.
- Submit the CoS, proof of qualifications, contract details, and other supporting documents.
- Visa Issuance
- If approved, the visa is granted for the specified duration:
- Minimum three years for Intra-Corporate Transferees
- Up to 12 months for Contractual Service Suppliers and Independent Professionals
- As per the annual quota for niche professions
- If approved, the visa is granted for the specified duration:
- Arrival and Compliance
- Upon arrival in the UK, standard immigration rules apply.
- Applicants must pay the health surcharge and follow all visa conditions.
Implications and Practical Effects
For Indian Professionals:
- Greater certainty: The FTA’s lock-in mechanism means you can plan your UK assignments without fear of sudden rule changes.
- More opportunities: With 35 sectors now open, more professionals can qualify for UK work.
- Cost savings: The National Insurance exemption increases take-home pay and reduces employer costs.
- Special roles supported: Chefs, yoga instructors, and musicians have a clear path to UK work through the new quota.
For UK Employers:
- Access to skilled Indian talent: The deal helps fill skill gaps in key sectors.
- Lower costs: The social security exemption makes it more affordable to hire Indian professionals.
- Stable planning: Employers can make long-term plans knowing the visa rules are protected by treaty.
For Pending Applications:
- No negative impact: Pending GBM applications from Indian nationals are protected.
- Minimum stay guarantee: Even if UK policy changes, your visa duration will not be shortened below three years.
- Expanded eligibility: If your sector is now included in the expanded list, you may qualify even if you did not before.
Political and Economic Context
The India–UK Deal and Free Trade Agreement aim to double bilateral trade to US$120 billion by 2030. The agreement is seen as a milestone by the Indian government, which expects it to benefit workers, startups, and the wider economy. The UK government highlights the deal’s role in filling skill shortages and boosting innovation.
However, some UK policymakers have raised concerns about the National Insurance exemption, estimating a reduction in UK tax revenue of £100–200 million each year. Supporters argue that such exemptions are common in trade treaties with over 50 countries.
It’s important to note that while the FTA expands access to many service sectors, finance and legal services remain mostly excluded for now. Future negotiations may address these areas.
Background and Historical Context
Negotiations for the India–UK Deal began in 2022, with business mobility as one of the most debated topics. The final agreement on these terms was reached in May 2025, leading to the signing in July 2025. Before the FTA, Indian access to UK business visas was subject to UK domestic policy, which could change at any time. Now, these rights are protected by an international treaty.
Future Outlook and Next Steps
- Implementation: The FTA’s business mobility rules are now in force. The UK Home Office will publish more details on sector eligibility and quota management soon.
- Possible expansion: Talks are ongoing to further open up finance and legal services and to increase quotas for niche professions.
- Monitoring: Both governments will review the agreement each year and can make adjustments as needed.
Official Resources
For the most up-to-date and detailed information, visit the UK government’s official visas and immigration page. This site provides guidance on visa types, sponsorship, and application procedures.
Caveats and Limitations
- No new visa types: The FTA does not create new visa categories but protects and expands access to existing ones.
- UK retains control: The UK can still adjust sponsorship processes, salary thresholds, and other criteria, as long as the core access and minimum duration guarantees are kept.
- No direct path to settlement: GBM visas are temporary and do not lead directly to permanent residency. Applicants may switch to other visa categories if eligible.
Conclusion and Practical Guidance
The India–UK Deal and Free Trade Agreement bring much-needed clarity and opportunity for Indian professionals and UK employers. By securing access to key visa routes, expanding sector eligibility, and offering cost-saving measures, the agreement sets a new standard for business mobility between India 🇮🇳 and the United Kingdom 🇬🇧.
Immediate next steps for readers:
- Indian professionals: Check if your sector is now eligible and prepare your application with the required sponsorship and documents.
- UK employers: Ensure your Sponsor Licence is up to date and review your hiring plans in light of the new rules.
- Pending applicants: Rest assured that your application is protected under the new agreement.
For ongoing updates and detailed analysis, VisaVerge.com reports that both governments are committed to reviewing and improving the agreement, making this a dynamic and evolving opportunity for cross-border business and talent.
Stay informed by checking official resources and monitoring updates from the UK Home Office and India’s Ministry of Commerce & Industry. This will help you make the most of the new India–UK Deal and Free Trade Agreement, and take full advantage of the expanded Global Business Mobility options now available.
Learn Today
Free Trade Agreement (FTA) → An international treaty that expands trade and mobility rights between India and the UK.
Global Business Mobility (GBM) → A UK visa scheme allowing Indian professionals temporary work in the UK.
Certificate of Sponsorship (CoS) → A UK employer-issued document required for visa applications under GBM routes.
Intra-Corporate Transferee (ICT) → Visa category for employees transferring within their company to UK branches.
National Insurance Exemption → A waiver exempting Indian workers and employers from UK social security payments for three years.
This Article in a Nutshell
The India-UK Free Trade Agreement, effective July 25, 2025, secures visa stability and broadens opportunities for Indian professionals across 35 sectors. It introduces a new annual quota for niche jobs and exempts many from UK social security contributions, marking a landmark in bilateral business mobility and talent exchange.
— By VisaVerge.com
